Vietnam's Oil Imports Surge Amid Gulf Crisis
In response to the Iran war-related disruptions, Vietnam significantly increased its imports of refined oil products, leading to a trade deficit and rising consumer prices. This surge in imports from South Korea and Malaysia compensated for the reduced supplies from China, affecting Vietnam's aviation sector and overall economic stability.
Vietnam has ramped up its imports of refined oil products following supply disruptions caused by the outbreak of the Iran war, according to customs data.
The increased imports have helped cushion the nation's industrial sector from the Gulf crisis, but have contributed to an unusual trade deficit and a sharp rise in consumer prices, which rose by 5.46% in April, exceeding government targets. From March to April, Vietnam boosted its imports of refined oil products by nearly 17% year-on-year in volume terms and by 144% in dollar terms, per Reuters analysis.
South Korea and Malaysia have emerged as Vietnam's key suppliers, replacing falling shipments from Singapore and China.
China's export restrictions particularly impacted aviation, as Vietnam once relied on Chinese shipments for over half of its jet fuel. Despite securing exemptions, shipments dropped significantly.
With a complex energy outlook, Vietnam has sought imports from the U.S., Africa, Oman, and Angola to replace lost supplies from Kuwait, aware that raising domestic crude output quickly remains challenging.
(With inputs from agencies.)
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